Balance sheet accounts are considered to be
A) temporary owner's equity accounts.
B) permanent accounts.
C) capital accounts.
D) nominal accounts.

Question

Quizplus · Accepted Answer

Balance sheet accounts are considered to be permanent accounts because they carry over from one accounting period to another and are not closed out at the end of each period. This is unlike temporary owner's equity accounts or nominal accounts, which are closed out at the end of each period. Balance sheet accounts include assets, liabilities, and owner's equity, and they provide a snapshot of an organization's financial position at a specific point in time.

Balance Sheet Accounts Are Considered to Be